1. Car color matters

Are red cars more expensive to insure because they get pulled over more often than other colored cars? Nope. Your insurance company won’t take car color into consideration when it determines your premium.

2. Small cars are cheaper to insure

Because small cars are usually driven by less experienced drivers, and because claims filed that involve small cars usually involve more injuries, small cars are not necessarily cheaper to insure. Small to mid-sized SUV’s and minivans are usually the least expensive to insure.

3. Older cars aren’t likely to be stolen and don’t need coverage for theft

Older cars are stolen for parts more often than new cars, so coverage for theft should not be overlooked if your car isn’t brand new.

4. The insurance company will pay off your loan if you total your car

Your insurance policy uses the current fair market value to determine the value of your car if it is totaled, and this may be considerably less than what you owe if your loan was substantial and enough time has passed.

5. Credit scores don’t affect insurance rates

In general, it is believed that those with better credit scores tend to be better drivers and file less claims, so insurance companies can and will look up your credit history when determining your premiums.

6. Insurance rates increase with driver’s age

The opposite of this is usually true. Once a driver reaches age 55, they can take a driving test to lower their rates. Younger, less experienced drivers most frequently have higher rates.

7. Getting a traffic ticket will increase my rate

When you first sign up, the insurance company will know about any tickets, but as long as you don’t change insurance, get into an accident, or let your insurance lapse, then chances are they won’t know about your speeding ticket.

8. If someone borrows my car, their insurance will cover any accident or damages they incur.

You and your insurance are responsible for anyone in your car. If you let someone else drive your car, you do so at your own risk.

9. Insurance covers damages on your own car

Liability insurance covers damages to other cars and drivers, not yours. Comprehensive and collision insurance will protect you and your car but are not required additions to coverage.

10. Loyalty to an insurance company will secure you a lower rate

The best way to secure a low rate is to shop around. Your rate cannot be protected by loyalty to a company.